Question

The market for tablet computers contains only a few major producers. if more tablet computer producers enter the market, what will happen?

Answer 1

The market will become more competitive and the price will fall.

Answer 2

In front of the entrance of new tablet computer producers in a market dominated by just a few, the price of the tablet computer per unit is likely to decrease since there will be more competition. Goods do not only differentiate one another for their features but also for the price since most consumer purchase decisions are price-driven.